2007 APA-W-FIVE Used Car Investigation Montreal

Advertised monthly payments do not include interest, and an extra charge of $399 specified in ad. The advertised monthly payment is $188 for a 2003 Corolla. With interest, extra charges and taxes, the actual monthly payment is $310,.

Seller correctly steers buyers away from in-house financing at 13% with a non-declining balance loan, which he says is equivalent to borrowing at 20% interest. Seller says both cars have original paint, omits to mention some collision work on both cars examined.

Misrepresentations on Accent which was not collision-free: APA inspection shows hood and fenders replaced, and extensive repainting. The mandatory used car information label is less complete than most – the warranty and dealer repairs are missing.

Cars sold « as-is »; the customer has to pay extra for a warranty. Prohibited in a dealer sale in Quebec, unless the vehicle is being sold for parts.

FailAuto Notre Dame11,313 Notre Dame
Montréal Est
514-640-7515

Seller says 99% of cars accident-free. Two of three cars inspected by APA have been hit = 33% accident free. APA inspection reveals Corolla is clean. Frontal and side impacts on the two Protegés; over 6 inches of water in trunk of silver Protegé.

Damage to the Focus greater than seller represented. Represents Sonata as original, but just came in and he hasn’t checked it yet. APA inspection of Sonata shows frontal impact, aftermarket hood, both fenders and one side repainted.

Selection comprised mostly of rough vehicles. Alero would not start, appears to be a dead battery. Extra charge of $200 for financing arranged by the dealer. Seller says cars are given a quick check, but full inspection not done until vehicles are sold. Willing to lend garage and lift to buyer’s mechanic.

Misrepresents significant collision damage on 300M. Dealer says only the headlamps have been replaced. APA’s inspection reveals frontal impact; hood, both fenders and windshield replaced, body filler from top of windshield to sunroof. Seller appears to be more forthcoming with information on Sonata engine (it’s knocking). Used car information labels incomplete; pre-printed information is missing some of the categories of information required by law.

Low prices, large selection of vehicles not hit, most appear to be lease returns purchased from auctions or directly from the manufacturer. Extra charge of $385 listed prominently in ads, and in showroom. Charge has since been d ropped. Dealer may not give a full Class D warranty (inspects only for safety, but will they warranty the items they did not check?). Minimal cosmetic reconditioning could be a plus, as buyer can see the actual damage - - visible damage on doors of Venture van could be repaired at customer expense before delivery.

APA subsequently received reports that dealer requires a deposit and signing of a contract prior to test drive, which is prohibited in Quebec.

High extra fees of $375 posted prominently on label. Blue Chevrolet Venture doesn’t start; seller represents vehicles correctly as not prepared for sale. Seller correctly informs buyers that a monthly payment is more expensive than four weekly car payments, because a month is actually four and one third weeks.

1) $109.25 SAAQ inspection for out-of-province vehicles not mentioned in advertised price (applies to 50% of vehicles offered for sale according to salesperson),
2) All prices “Plus $399” mentioned in ad (charge has since been d ropped),
3) $450 warranty inspection fee before vehicle can qualify for an aftermarket warranty.

Competent seller identified buyer’s needs before recommending a vehicle. According to seller, the advertised vehicles are already sold, never existed, or available as one unit at advertised price being shared by three or four locations. Only dealer visited by APA in Canada to charge a warranty inspection fee on top of the price of the warranty for vehicles represented in ad as already inspected.

Second visit in March 2007:

Advertised vehicle is at a different location and will require a deposit of $299 for the dealer to deliver it to the location being visited by the buyer. Extra charge of $399 has been d ropped. Extra charge of $109.25 for out-of-province vehicles continues – APA contends the charge should be included in the advertised price under Quebec’s new advertising guidelines. Interviewed by CTV News in April 2007, H Grégoire representative says provincial inspection is a convenience extended to customers which they will d rop if told to do so by the Office de la protection du consommateur.

Ad misrepresentations regarding interest rate, free DVD TV, Venture, and price representations. Use of term “Free” in advertising prohibited in Ontario (not “free” because you have to buy the vehicle first). Misuse of term “Wholesalers” in retail advertising, which is prohibited in Ontario. Tricky ad promises “Only $25 per hour labour charged on vehicles purchased here for life of vehicle” in bold print. Fine print reads “$25 per hour and up”.

D.O.T. plaque on the wall is similar to a bogus charge levied by IVN Auto Used Car Sales. Ad promises free DVD no installation; on the lot, seller says there is an installation charge.

Highest extra fees observed by APA in Toronto this year of $1,020. Includes lien registration on dealer financing, misrepresented as costing $495. Ad guarantees credit approval, prohibited in Ontario. Term “as is” meaningless in Ontario – consumer still entitled to Sale of Goods Act implied warranty of fitness and right of rescission; consumer may not realize they have these rights because of the ad.

Advertising misrepresentations: No fees in ad really a $175 admin fee plus an excessive $350 safety certification fee if you don’t buy as-is. Advertised zero percent in-house financing is for a small balance of sale of about $1,000 for one year, with a $495 lien registration fee.

Ad does not mention a charge for safety certification, which dealer priced at either $200 or $400, depending on the results of the inspection. Both are in excess of the real cost around $50. Additional admin. Fee of $200.

Use of term wholesale prices to the public a misnomer and prohibited in Ontario. Excessive extra fees total $548. Like IVN Autos Used Cars Wholesales, ad contains a phony charge for DOT -- more correctly described as safety certification charge by salesperson.

Significant proportion of collision-damaged vehicles. Seller says he “can tell a mile away” if a vehicle has been hit, and makes a theatrical demonstration of Toyota Echo to show it is collision-free. CarProof history search confirms Echo is a write-off.

Excessive extra fees totaling $525. Ad states prices do not include taxes and Admin. fees. Ad fails to specify the charges for safety and emissions certification, nor the amount of the Admin fee. Vehicles examined have no significant collision damage.

Dealer declares prior collision damage on a report posted on the vehicle. APA-observed damage on the Audi A6 includes front fenders and hood replaced, and lots of body filler. Damage appears more significant than $1,500 reported by the dealer, but his estimate is consistent with the CarProof report. Protegé has somewhat more damage in CarProof report than dealer declares.

Ad mentions a charge for DOT (a bogus item, as there is no DOT in Ontario), but dealer doesn’t appear to require it. $249 admin. fee;

Dealer reports collision history inaccurately for two cars. Dealer says he bought the Maxima from Nissan Canada; according to ownership history search, this appears to mean car was bought at an auto auction and used to belong to Nissan. Extra charges limited to one $295 fee.

Regarding the Maxima, dealer says: “a slight accident, it runs straight”. APA inspection determines the floor and back wall of trunk were damaged, the back bumper replaced, and frame rails damaged and repaired. CarProof report shows impact with another vehicle dated 12/10/2004 for $9,516.

Unlicensed curbsider or dealer selling junk from his home. Seller says his family is in the insurance business; they call him up and tell him they have cars and he goes to the U.S. to pick them up. He does this because it’s cheaper. Seller says both cars were involved in frontal collisions, with only the grille and hood replaced (non-structural damage).

Seller says, “If you’re interested, you can buy it without taxes.” APA asks, “How can you do that?” Seller replies, “It’s my secret”. Both cars are in his wife’s name. Seller permits inspection at his mechanic’s garage.

Blue Galant is a U.S. insurance write-off bought at a salvage auction.
APA inspection shows the car is not fit for the road. Incorrect underbody welds, a suspension control arm is wonky, incorrect lug nuts are chewing up the alloy wheels, and the front headlights are fogging.

Curbsider who may be working with a used car dealer close by. Says car was purchased for his parents, but it’s too small for them. Seller showed photos and evidence of a New York DMV Salvage Certificate. APA’s expert determines the photos appear to come from a different Honda Civic. Seller states, “I don’t really sell cars. It just keeps me busy and out of trouble.” W FIVE confirms he’s sold 40 or more vehicles and is in trouble with Ontario Motor Vehicle Industry Council for curbsiding.

Misleading ad, 2001 Sienna “3 to choose… starting at $11,800” is actually one to choose at $17,800. The Sienna advertised at $11,800 is a 1998 model.

$296 in extra fees not mentioned in ad. Comprised of a DOC. Fee of $198, lien registration of $58, and AirCare $40-$50.

Misleading reporting of damage on Civic. Ad reads “mint” condition. Seller says $6,000 claim, which is a very small collision, and parts were not replaced. APA inspection reveals two fenders and hood replaced, body filler in all 4 doors and both rear quarter panels. Structural impact at left subframe rail and strut tower. A-pillar repaired, large B-pillar gaps, radiator support replaced. Car pulls to the right on road test. Fair amount of rust for indicated mileage.

Low charge for extra fees, consisting of a $95 Doc. fee not mentioned in ad. Seller shows ICBC report on silver Civic -- 3 small claims for $423, $427, $520 – likely just break-ins. Silver Civic has 4 bald tires; seller says if car fails inspection, deposit will be refunded. No apparent discrepancies other than posted prices on some vehicles which are significantly higher than the price in the ad.

2001 Prius advertised as “no accident” has been hit on the right side. Damage appears non-structural. Seller says prepped for sale, but APA notes it needs brake service and car required a boost to start. Both Hondas have serious structural damage. Dealer tells W-FIVE the “no accident” descriptions are due to errors by Auto Mart.

No extra fees. Very knowledgeable seller, who made few representations about collision history. Seller says he is one of less than 10 car dealers to have a BBB membership. Says all his cars are from the States. ‘’I started it out here.’’ $500 off price if buyer purchases Prius as-is. APA notes some vehicles have prior bodywork, including a 1997 BMW described as “one owner, no accidents”, but none appears structural.

Seller states 94 Corolla is a U.S. car imported to Canada a long time ago. Seller says it’s never been in an accident “according to ICBC”. APA notes structural damage, though ICBC report showed no accident. Left front fender replaced, hood repainted, roof partial repaint. Side impact at B-pillar (body filler), rear door has been removed for repair or replaced. Body filler along rocker rail (structural impact) and in both left-side doors. Rear bumper replaced.

Good constructive disclosure on vehicles and documentation. Seller answered buyer accurately regarding tires on Caravan (good for one season in Vancouver, elsewhere, buy new tires). Seller showed every form in the dealer jacket, including AirCare, ICBC, and his own report from an independent appraiser, as well as where he obtained the vehicles.
Good information on the poor coverage offered by the basic Lubrico warranty. Dealer sells the better coverage called Value Plan Protection for $499, which includes seals and gaskets.

Seller says Auto Broker is just the name. They’re not wholesalers; they operate like a dealer.

A BC MDC inspector had just visited that day. Seller says “I’d never seen an inspector in sixteen years.”

Caravan is ultra clean, interior looks new. Jetta on lot had no cluster (out for repairs).

Dealership retails about 150 cars per month, the majority are reported to be daily rentals. Vehicles are washed, fluids checked, and maintenance schedules followed. To supplement their stock, Budget buys off-lease vehicles elsewhere. Two full-time buyers are on the road, now bringing in cars from Washington State via Budget in Bellingham.

Some cars may be repainted. If a major problem arises in the first 30 days, Budget will provide a loaner and try to fix it.

APA notes prices high on 2006 models. Not clear if used Matrix is cheaper than a new one with Toyota financing.

Good information from experienced seller specializing in sub-prime lending. 25% interest rate on financing. For credit application, seller requires valid BC license, two bills to the same address and same name on driver’s license, and some pay stubs. Dealer has own tracker for bad risks, and finances with his own money. Dealer says ad copy that shows 100% guaranteed car loans attracts buyers. All vehicles sold “as-is”. Pre-purchase inspection by buyer permitted.

Dealer fails on advertising representations. Ad promises “Vehicles from $99/month, 100% guaranteed car loans, warranty available, in-house financing available”. There are no vehicles available at $99/month. According to the dealer, that payment finances a car worth less than $3,000 and those cars caused too many problems.

No extra fees. Seller says he doesn’t buy cars at ICBC auctions, and doesn’t buy used cars from the U.S. because they are “fishy” and he doesn’t trust them.

Material misrepresentations on the extent of damage to several vehicles. Dealer states, “Every car has front-end accidents because people are on their cell phones.” APA shopper asks, “Do you have any vehicles that are not damaged?” Dealer answers, “Japanese?… no.”

2001 silver Corolla 2001: Dealer says it cost him $1,400 to repair, including a new hood for $60, radiator support, front bumper and lights. APA notes lots of aftermarket car parts from Chen Wei, not Toyota, and presence of body filler. Frame has been pulled to straighten it, but frame rails are still crooked. Factory caulking cracked at firewall, either from impact or re-stretching.

1997 Protegé: seller says it cost him $500 to repair impact to driver’s side front corner. Seller says he replaced driver’s side headlight, bumper, and grille. APA inspection reveals structural damage to frame rails and strut towers – a trained eye can see the entire front of the car is still bent to the right, relative to the windshield.

Inspection permitted, seller recommends garage next door which he says is an an ICBC Claim Center called Advance Auto. ICBC informed the APA that Advance Auto in Burnaby is NOT an ICBC Claim Center or accredited shop.

High extra fees of $375 for documentation and lien search not disclosed in ad.

1997 Acura EL: APA inspection shows no VIN sticker on door or dash. Oil dirty and low. No oil change or timing service sticker. Too many missing VINs on this car for the represented $7,000-$8,000 accident.

2002 Acura EL with “no accidents” is too old for the dealers, according to seller. APA inspection reveals it has been extensively repainted. History search shows car came from Quebec.

Extra fees total $290 for lien search, transfer, documentation. Some cars in generally poor condition. Ad reads “clearance sale”, but no evidence of a sale going on; prices are high and seller is not prepared to discount.

Canadian and U.S. inventory. Seller says supply of local vehicles is not sufficient to supply the local market, so cars come from all over.

1998 Civic 1998 is a local car with a prior collision over $3,500. Seller says it’s ready to go, but had to use pliers to open the hood. APA inspection shows radiator and bumper supports changed. Car repainted black (was green). Rear impact too. Rubber on pedals worn to the metal is unusual on a Honda at 130,000 km.

Extra fees of $195 not mentioned in ad. Regarding financing, dealer says “Do it yourself.” Dealer uses a broker who charges the consumer $495 to have the loan approved.

Inspection not permitted at buyer’s garage, nor at the Toyota dealer across the street in Westminster. Recommends an inspection by Tony from a mobile inspection service (gave card -- “He’s the best; he does a compression check”).

1998 Corolla: Dealer says collision repair is limited to a rear door. “That’s a deal, my friend. I tell you, it only had one small accident on the rear door. It’s been inspected by the ICBC.” Seller shows APA mystery shoppers where the accident was, “only on the back door.” APA inspection captured on W-FIVE camera shows rear third of body is from a different car.

Nice selection of clean cars. Dealership buys cars from other dealers. Inspection permitted wherever buyer wants. Financing by buyer is cheaper, dealer is more expensive due to brokerage fees. 3-month warranty included. Better coverage available for extra cost from Lubrico. Salesman has taken the BC MDC certification course; 70% or higher is required on 150 questions.

Dealership appears to be a discount outlet that sells retail. Reasonably clean location with a target price of about $8,000 per vehicle ‘’sweet spot’’. Plenty of non-structural hit cars priced to sell.

Cars are sold with no warranty. An extra-cost warranty from Coast To Coast is available. Just $65 covers documentation fee, lien search + ICBC paperwork. Seller states other dealers charge a lot more, but “That’s what is costs us to make the papers.”

Protegé 5 is not yet prepared for sale. “We don’t know if there are any accidents on out-of-province cars.” APA inspection reveals front hit, front and rear repainting (impact not structural). Condition consistent with age and mileage of vehicle.

Sephia appears to be in good overall condition. Seller says it is a better bet than the Protegé 5 for $1,000 more (correct). APA inspection confirms no accidents, local car, owned by a smoker.

Cheezy ad promises “Rates from 4.9% approved or free car!” Dealer says 4.9% is doable with in-house financing arranged with money from a private investor, or 7.65% at HSBC. Minimum of 10% down.

Only Vancouver dealer to offer fully prepped cars backed with 30 day bumper-to-bumper warranty, and 90 day powertrain warranty with no apparent repair limit. Ad states warranty is “unconditional” – meaning is not clear to APA shoppers. Dealer permits inspection at buyer’s garage.

Dealer doesn’t carry any vehicles older than 2003. High prices on most of inventory will make early termination risky, as buyer will likely owe more on the lease or financing than the value of the vehicle.

2003 Civic is a local car; dealer discloses one $1,900 accident. Dealer shows buyers washout sheet with about $1,600 in reconditioning charge, including two tires, new brakes, a transmission flush, and oil change. Some room to drop price.

Heroic effort by seller, who demonstrated vehicles that were blanketed with snow, jump-started one that did not start, and did not recommend a tired Montana van. All vehicles are purchased at U.S. auctions. Seller produced paperwork for all three vehicles shown, including CarFax report, importation papers, BC safety certification.

Fails due to excessive extra fees not indicated in ad of up to $390 for cars costing above $20,000. Seller did not recommend paying the additional $500-$600 finder’s fee for in-house financing.

Seller says a local non U.S. 2002 Forester would sell for $15,000 (likely true). CarFax shows it’s a Nevada car with two owners, the first for 1 month, the second for 4 years. Body all clean.

Montana has been inspected, but not repaired yet. Dealer says, “We have to make sure there’s antifreeze in there. If we start the car (like this), we blow the engine.” History search shows three owners in Washington State. Seller discloses defective power window and wheel bearing. APA inspection reveals a bad antifreeze leak, right-side repainted, 4 tires bald, lots of oil leaks.

Materially underreports extent of damage on vehicles. According to dealer, if ICBC determines there is frame damage, they will not allow the vehicle back on the road (incorrect, based on the evidence in the dealer’s own inventory). According to dealer, “When ICBC determines prior damage is over $2,000, they write it off.” Dealer claim that it costs $240 an hour to fix a car after a collision is outlandish.

No extra fees.

Referring to the 2000 Corolla, seller says the frame has never been touched. The engine, transmission and differential were not touched, only body damage. Shopper asks about the radiator. Answer: “the radiator is original. It’s never been touched.”

APA inspection of the Corolla reveals impact at both front frame rails. The upper part of the right-side frame rail has been displaced at the firewall. Body filler on right-side rear door is not fully painted over. Radiator replaced. Car needed a boost.

RAV4: Dealer says damage is cosmetic. APA inspection reveals structural impact at the right rear corner, and the rear door has been replaced with one from a white vehicle. (Car is champagne or another light metallic colour.)